Shocker! Americans are now using crowdfunding to pay for groceries
What's the story
Tim Cadogan, the CEO of GoFundMe, has revealed that many Americans are now using the crowdfunding platform to fund their groceries. Speaking to Yahoo Finance and Opening Bid Unfiltered Podcast, Cadogan said there is a major shift from traditional campaigns for emergency needs to everyday survival expenses. "In some cases, very sadly, that is happening. We're seeing it more and more," he said.
Economic strain
Cadogan on inflation's impact
Cadogan said prices of basic necessities have gone up significantly in the last three years across almost all markets. He said people are now asking strangers for help with food expenses, which shows how hard inflation has hit many Americans. The essentials category on GoFundMe includes rent, utility bills and car payments.
Funding shift
What does Consumer Price Index data say?
Cadogan's comments come as the latest Consumer Price Index data shows a 2.9% annual increase in prices in the US. The USDA has also predicted a 3% rise in overall food prices this year. Despite these challenges, Cadogan is optimistic about a historic "wealth transfer" in the US as baby boomers pass on "tens of trillions" in inheritance and charity.
Platform impact
GoFundMe's growth and future outlook
Since its launch in 2010, GoFundMe has attracted over 200 million users and raised more than $40 billion. The platform is present in 19 countries and around a third of Americans have used its services, Cadogan said. He hopes younger donors will contribute more to giving as they are "more values-driven, digitally native, and community-oriented."